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After the initial replacement period (14 days etc) Apple are actually a little bit different in that all repairs/replacements go back to them irregardless of where they came from.
It was a nightmare when I worked in Currys because they would only deal direct with the customer and some people...
Not 100% but my 5s was when with ee but that was a while ago.
So do you give the phone back after 11 months?
I've always bought the phone outright then resold it for 60-70%ish so it's only a few hundred upgrade but that sounds cheaper.
I suppose because it's a pretty iconic feature of Apple products for the last 10 years, soon as you see it you think Apple.
I don't think it's mechanical on the 7, I'm sure it was mentioned in the keynote.
Apples always been that way tho, "premium" products for a high price.
No doubt someone will come out with an adapter to allow you to charge and listen for a couple of pounds.
You still get the Lightning wired headphones as standard I think.
It's all about making the phone thinner, I guess they have done it now so people won't complain on the next iPhone which will probably be a complete redesign.